When the government imposes taxes on buyers or sellers of a good, society is bet

Question

When the government imposes taxes on buyers or sellers of a good, society

is better off because the government’s tax revenues exceed the deadweight loss.

gains efficiency but loses equality.

moves from an elastic supply curve to an inelastic supply curve.

loses some of the benefits of market efficiency.

is better off because the government’s tax revenues exceed the deadweight loss.

gains efficiency but loses equality.

moves from an elastic supply curve to an inelastic supply curve.

loses some of the benefits of market efficiency.

Explanation / Answer

answer is d,loses some of the benefits of market efficiency because there is deadweight loss because the quantitytraded goes down.

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